Vidyalelo
Commerce · Q687

Costing

Graduate and Post Graduate · Commerce · question 687

Q687

Forth step in process costing system is to

A.
summarize total costs
B.
compute cost for each equivalent unit
Answer
C.
summarize flow of output
D.
compute output in units

Answer: Option B

Solution

Answer: Option B
Solution:
Forth step in process costing system is to compute cost for each equivalent unit. Process costing is a term used in cost accounting to describe one method for collecting and assigning manufacturing costs to the units produced.